Children’s decorative accessories: a category poised for growth

Children’s decorative accessories: a category poised for growth

by Jenny Heinzen York -- Kids Today, 8/1/2009 12:00:00 AM

Decorative accessories for kids is a category that has seen its share of ups, and lately downs, but one where smart vendors and retailers still spot an opportunity.

The category, as defined for this story, includes wall decor, tabletop pieces, lamps or other decor, not including bedding or furniture.

Midwest-CBK is fairly new to the children’s market – with the CBK division unveiling its Build-A-Bear licensed collection in 2008. The Midwest division has the Genuine Monkeez Collection, which is a best-selling line of plush that has now been extended into home decor and apparel. The kids category accounts for about 5% of the company’s business. “We felt that there will always be demand for children because people will spend money on kids when they will not spend in other areas,” said Terry Stewart, executive vice president of sales. “We also wanted to 'test the category’ to see if it was a fit for our customer base.”

At wall decor producer Paragon, the youth/children’s category only accounts for about 2% of the company’s business, but, “this category is definitely gaining momentum,” said Malanta Knowles, vice president of design and marketing.

For Alicia Stanley, 30% to 40% of the business comes from the juvenile accessory market, a strength that the owner says comes from its natural affordability.

“Our lighting, which is used in many children’s rooms is a much more affordable product compared to the colorful and whimsical furniture we design and sell,” said Alicia Stanley. “Like our children’s furniture line, this product is very colorful and is more of an accent piece for a room.”

Kelly Neal Mariotti, president of Green Frog Art, said approximately 25% of her business is in accessories, and for her, that category is weaker than other categories, because they are not necessities.

“People are definitely cutting back on the items they deem 'optional’ and focusing their spending on the requirements – crib, necessary case pieces,” Mariotti said.

Consumer spending in this category has definitely been challenged, but the vendors told Kids Today they are expecting some better news in the months ahead.

“We are looking for the consumers to be out purchasing again during this time,” Knowles said. “Many retail stores will be low on inventory so there will be a need to replenish empty shelves with new products. We are finding that our customers are being very cautious, looking for top sellers that will be an obvious reorder. They are buying subjects that are tried and true and safe.”

At Midwest-CBK, Green Frog and Alicia Stanley, the story is the same – customers are cautiously optimistic, but being very careful in their buying decisions.

“The mood is actually good but very cautious – tightening their belts, cautious on what they order, delaying trying new categories, seem to be looking for vendors they feel will be around tomorrow, very interested in ways to reduce their working capital,” Stewart said. He noted increased interest in programs such as Midwest-CBK’s drop-ship program, whereby retailers can expand what they offer the customer but not have to worry about inventory or margin markdowns due to over-purchasing.

Stanley said the mood among her customers is mixed. “Some customers have had very little impact, while others are struggling to get by,” she said. “In general all customers we have spoken with are being very careful in their buying. Most are buying products they know will sell.”

So how are these vendors fighting to stay competitive?

On the business side, Midwest-CBK is watching all expenses with a close eye, Stewart said. “We have kept internal costs down, negotiated hard with our suppliers, streamlined operations, eliminated under-performing SKUs, tightened up on all expense budgets and delayed some new product launches,” he said. “We have also kept a very close eye on working capital, inventory and receivables.”

Paragon is working on creating better product and getting it to market faster, Knowles said. “We want to be a little ahead of the curve so we can create the buzz.”

Product is also the key at Green Frog. “After a light product development year last year, we have been aggressive about introducing new product this year,” Mariotti said. “We tried to be a bit ahead of the curve and it seems to have worked. We haven’t shied away from introducing higher end product. I don’t believe fighting to be the lowest cost provider works. Consumers are looking for good value and are still willing to pay for great quality. We’ve also moved some of our sourcing back to the United States.”

Regarding trends, a turn toward contemporary is happening.

“We are seeing a great interest in more contemporary products, but we are also getting calls for 'new traditional’ items too,” Knowles said.

“Clean, contemporary styling seems to be the most popular look,” Mariotti said. “There is huge demand for green products in all categories, but somewhat less in accessories than in sleep environments (cribs, cradles). The hottest trend by far right now, however, is safety. Ninety percent of the consumer calls I get want safety information.”

And, of course, color is always important to the juvenile market, especially now when everyone needs a little cheering up.

“As always, lots of color!,” Stanley said. “People get motivated by color. This is an area we have always concentrated on and has been successful for us. Colors are tricky, they have to be done right to create excitement.

Midwest-CBK introduces a newly expanded line of plush sock monkeys, as well as a line of children’s gifts and decor, all featuring the signature Genuine Monkeez sock monkey characters, $4 to $25, 800-776-2075, midwestofcannonfalls.com.

The Sassy table lamp from Alicia Stanley is made of shiny nickel-plated steel with a choice of lampshade. The shade is shown in Foxy Pink & Clotted Cream with a Citron green ribbon & cream colored flower. 440-543-9773, aliciastanleyandcompany.com.

From Green Frog Art, this wall decor design is from the Play Dog Days series of canvas art. 904-280-3903, greenfrogart.com.

Sweet Beginnings Plaques are handmade and can be individually designed. The plaques come in 9 different shapes, various colors and a range of fonts and monograms to choose from, $29 to $110, 561-278-4414, sweetbeginningsinc.com

Happy Bird by artist Carter Carpin for Oopsy Daisy, Fine Art for Kids, is a 16 inches by 20 inches stretched canvas, $108, 619-640-6649, oopsydaisy.com.

Pink Party Dress by Burnish & Brush Art Studio is handmade from beautiful handmade and exotic papers, which are cut, torn, layered and collaged to create unique, one of a kind decor. Each collage is signed and placed in an 8x10-inch frame, $65, 905-954-1574, Burnishandbrush.com.

Lily the Lobster from Kootie Bug Designs is printed on giclee canvas and stretched on wood framing. It can be personalized with a child’s name, $55 (9x12) and $110 (16x20), 919-833-8863, kootiebugdesigns.com.

Blooming Kaleidoscope VI from Paragon is by artist Vikki Weigel. Includes complimentary “art necklace” to match the print, $448. 800-547-7746, paragonpg.com